After several days of rallying, solar enery stocks have received the news investors have all been hoping for. Today it was announced that the House and the Senate had passed a sweeping bill which would extend the solar Investment Tax Cut of 30% for another five years. The house approved the measure in a surprising 316-113 vote, and the Senate also backed it in a 66-33 vote. Now the bill is headed to President Obama’s desk to be signed into law.
Shares of SolarCity Corp (NASDAQ:SCTY) are trading down slightly on the news, as investors seemingly had priced the bill into the stock already, but other solar energy securities such as Sunedison (NYSE:SUNE) are up. The entire sector has been up significantly all week long. This bill will allow for the important subsidies to continue to boost the solar market at the current 30% rate until 2020, and then gradually reduce over the following two years.
The stock is down 2.55% or $1.46 following the news, hitting $55.8 per share. Approximately 4.17M shares traded hands. SCTY shares have declined 8.40% since May 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.13%.
From a total of 13 analysts covering SolarCity (NASDAQ:SCTY) stock, 6 rate it a “Buy”, 1 a “Sell”, and 6 a “Hold”. This means that 46% of the ratings are positive. The highest target price is $98 while the lowest target price is $48. The mean of all analyst targets is $65.30 which is 17.03% above today’s ($55.8) stock price. SolarCity was the topic of 22 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. TH Capital maintained shares on December 16 with a “Buy” rating. Stifel Nicolaus initiated shares with a”Buy” rating and a $64.0 target share price in their report from a September 24. Goldman Sachs downgraded SCTY stock in a recent report from October 30 to a “Neutral” rating. Morgan Stanley upgraded the rating on August 27. Morgan Stanley has a “Equal-Weight” rating and a $93 price target on shares. Finally, Robert W. Baird downgraded the stock to a “Neutral” rating in a report they issued on an October 30.
The institutional sentiment decreased to 0.98 in Q2 2015. It’s down 0.40, from 1.38 in 2015Q2. The ratio dropped, as 46 funds sold all their SolarCity Corp shares they owned while 69 reduced their positions. 31 funds bought stakes while 82 increased their total positions. Institutions now own 52.19 million shares which is 0.67% less than the previous share count of 52.54 million in 2015Q2.
Founders Fund Iv Management Llc holds 100% of its total portfolio in SolarCity Corp, equating to 986,300 shares. Srs Investment Management Llc owns 8.02 million shares representing 11.35% of their total US portfolio. Moreover, Canyon Capital Advisors Llc has 5.22% of their total portfolio invested in the company, equating to 4.45 million shares. The United Kingdom-based Rit Capital Partners Plc has a total of 3.79% of their portfolio invested in the stock. Passport Capital Llc, a California-based fund reported 3.68 million shares owned.
Since March 9, 2015, the stock had 0 insider buys, and 7 sales for a total of $3.07 million in net activity. Buss Brad W sold 10,645 shares worth $512,377. Weissman Seth R sold 1,938 shares worth $92,037. Serra Tanguy sold 5,399 shares worth $258,358. Barnard Hayden sold 7,206 shares worth $344,171. The insider Pfund Nancy E sold 12,500 shares worth $750,200.
SolarCity Corporation sells renewable energy. The company has a market cap of $5.39 billion. The Firm integrates the sales, engineering, installation, monitoring, maintenance and financing of its distributed solar energy systems. It currently has negative earnings. It offers long-term energy solutions to residential, commercial and government customers.